Explanation:

In an effort to stimulate investment in research and development (R&D), the Department of Science and Technology is mooting a fund that will match the contributions made by private companies in R&D. Currently, a ?40 crore target was on the anvil. The idea is to pool funds from a group of companies willing to invest in fundamental research and whatever is invested government will match that. The scheme will be coordinated through the department’s Science and Engineering Research Board, which funds a variety of basic science projects in several universities. According to a 2019 report by the Economic Advisory Council (EAC) to the Prime Minister, as a fraction of GDP, public expenditures on R&D in India has been stagnant — between 0.6-0.7% of GDP over the past two decades. It is well below that in major nations such as the U.S. (2.8), China (2.1), Israel (4.3) and Korea (4.2). Public sector institutions form the lion’s share of India’s investment in R&D. In 2004-2005, private sector accounted for 28% of India’s research spend and in 2016-17 this increased to 40%. In most advanced economies, private R&D accounts for the bulk of investment in R&D. Hence both statements are correct.